934600+ entries in 0.644s
jurov: heh, i made some myself,
tooo
thestrin1puller: "All complaints of bondholder loss should be directed
to Bugpowder who now holds your money"
jurov: no replies on btctalk so far... but we'll see when ppl come
to bitfunder
to receive only 0.081 pre share
bitesak: do you adjust
the algo going forward
to
take into consideration what causes big losses?
mircea_popescu: bitesak i'd normally say my pleasure... but
this month was a little rough.
bitesak: thanks mp for
the service you provide;
thestrin1puller: am I
the only one who feels bad for
this month's bond holders?
benkay: obviously you have
to say
that.
benkay: what exchange-proprietary information does
the bot get access
to?
taub: they are binary options yea? dont
think i quite understand
their pricing from 0
to 1
benkay: providing liquidity
to
the market?
benkay: so it behaves as just another
trader?
benkay: how does it decide where
to place its bids?
benkay: we are engaging in a discussion of
this
topic, yes
thestrin1puller: "You can't pull yourself up by your breeches and for
the very same reason you can't have everybody in
the market hedge. Someone needs
to provide
the support everyone else relies on
to hedge. I'm
that someone." - MP
benkay: thanks mp, i understand
the mechanism a little better now. what I still don't understand is what
the MPOE bot is up
to.
mircea_popescu: the moment i go in
the market
to hedge i'm basically releasing all
the risk out
there.
this isn't waht mpoe does. mpoe just soaks up
the risk.
mircea_popescu: but
the 1st level providers don't buy it, cause
there's nobody
to buy it from
mircea_popescu: or if you prefer
the example of
the internet : second,
third and higher
tier providers BUY bandwidth.
mircea_popescu: i'm not
trading volatility, i'm actually providing
the hedge endpoint.
mircea_popescu: the alternative would be
to simply re-buy insurance somewhere else. but
this isn't underwriting,
this is simply
trading.
taub: i dont
think
thats how real option issuer work
tho
mircea_popescu: the only way
to actually underwrite
this is
to have a lot of money, sign insurance policies with
the farmers.
mircea_popescu: it would be beneficial for
them
to buy flood insurance.
mircea_popescu: benkay
take
the insurance example, because it is really very apt.
mircea_popescu: this is what it does. if i go buy safety somewhere else
then i'm no longer PROVIDING it
benkay: I don't understand
the phrase "seller of safety in btc".
mircea_popescu: okay.
the bot itself is a primary seller of safety in btc.
benkay: yes,
that makes sense. and
the bot?
taub: most forex brokers still operate like
that
mircea_popescu: mpex does offer stocks, but
that's not under discussion here. as for
the derivative
trade, ie options,
these are a different market from
the underlying.
mircea_popescu: the operator would offer very high margin and
trade with low net worth parties who couldn't participate in
the real marketsd.
mircea_popescu: a bucket shop is a currently illegal, historically popular venue
to
take side bets on stocks.
benkay: or its role. mircea_popescu, would you elaborate on
the bot's role?
jurov: lol all
the hate. inbetween, coinbr got possibly most deposits in one day in few hrs i was afk
taub: mircea_popescu: if
the underlying volume and depth cant support your options you shouldnt be offering
them like
that maybe ;)
benkay: i also do not understand
the option bot's behavior.
taub: the option bot is
the worrysome part
benkay: would you elaborate on what a bucket shop is and why MPEx is not
that?
mircea_popescu: but anyway : mpoe can't hedge. what it does is it allows others
to hedge against it.
taub: in forex i
thought it was, a broker
taht assumes most of
their customers are gonna lose money
taub: because you
take
the other side of each
trade, if
traders only win against you
then you lose money
taub: who lose on
their options
taub: to bring down
that big variance...
taub: but mpex either needs more horrible
traders
taub: yesterday on mygox
there suddenly was 15k on
the bid
benkay: isn't
that what
the help is for?
mircea_popescu: mpex makes sure
there's warm server soup on
the
table.
Bugpowder: Mpoe has provided most of
the returns and volatility
Bugpowder: In
terms of
the main profit engine
mircea_popescu: <Bugpowder> Mpex is a sideshow <<< if it weren't for mpex
there'd have been no divs
this month at all.
taub: I guess I can now go
to my grave having contributed ~15k BTC of my own
to
the stabilisation of BTC <- was
that big push you yesterday? :>
Scrat: the
trolling potential of
this channel is quite high. how could I miss
this
thestrin1puller: however it's
the riskiness involved in "borrowing"
the capital (can it be paid back /w interest)
thestrin1puller: I've used
the same model for some of my real life ventures, it's a very good model in
that you view capital as "equipment"
mircea_popescu: atm mpoe is a 0 capital venture, which is a good
thing.
thestrin1puller: mircea_popescu: why not create a war chest? For
times like
thse.
mircea_popescu: as in, i don't set a %, i just
take whatever
the max was
mircea_popescu: well ya on
this month. i rarely participate in
the actual market.
mircea_popescu: if
that's
true
then bondholders have been mispricing
their %
ThickAsThieves: the history of gained % seems a bit disproportionate
to
the risk
mircea_popescu: mpoe-bonds are pretty much
the highest reward / highest risk actgion in btc.
mircea_popescu: thestrin1puller well
they don't really.
the idea is
they're
taking on risk for a high %
mircea_popescu: when a hurricane hits
the insurer pays
through
the
teeth.
mircea_popescu: so other people can sell
their exposure and increase
their safety.
mircea_popescu: but
this is what it does. mpoe bot is in
the market of buying exposure.
ThickAsThieves: sensible, but it seems odd
to be
THAT exposed in
the algo
mircea_popescu: listen,
there's no way
to make a bot so you always win.
thestrin1puller: dunno, seems
the bot has
trouble with
times of extreme volatility
mircea_popescu: ThickAsThieves you send no less
than 100 btc
to 1JPvucRfu3ZzEvfBUQTJwsxMrZjeTqD6zR ending in 888 (so like 100.00000888) after you've emailed me stating your beneficiary addy and desired %
ThickAsThieves: how are bonds purchased, other
than
thrue
the coinbr bitfunder assets?
thestrin1puller: mircea_popescu: what's
the plan
to bring MPOE bot
to MPOE bot 2.0
mircea_popescu: thestrin1puller
they are lol. i hold most of mpoe and held most of
the bond book >.<
mircea_popescu: then again... i guess i can see it. shareholders don't care, not
their skin. made a 39 per which is not really much lower
than usual